TLDR
- Kanye West blames an Instagram hack for promoting a fake YZY token that briefly surged to $7 million.
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The real YZY token has dropped 81% since launch, despite claims of being legitimate.
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Critics question the credibility of celebrity-backed tokens as many suffer from volatility and manipulation.
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The meme coin craze continues, with many falling prey to scams and rapid price swings.
Kanye West has blamed a recent Instagram hack for the promotion of a fraudulent YZY token, which briefly spiked to a $7 million market cap before crashing. The rapper’s official token, which launched shortly after, has seen an 81% drop from its peak, triggering skepticism about its viability and the overall credibility of celebrity-backed cryptocurrencies.
On August 26, 2025, West took to X (formerly known as Twitter) to announce that his Instagram account had been compromised. He claimed the hack was used to promote an unauthorized YZY token, which surged rapidly in value, only to fall drastically the next day. West emphasized that the official YZY token, which he endorsed, was entirely separate from the imposter coin, which was promoted on his hacked Instagram account.
Fake YZY Token and Its Brief Surge
The fake YZY token, which was launched on the Pump.fun platform, saw rapid growth shortly after the Instagram hack. The coin briefly hit a $7 million market cap, fueled by the attention West’s account drew to it. However, the token’s value collapsed within hours, sinking to just a fraction of its peak value.
This sudden surge and crash raised alarm among crypto observers, many of whom view celebrity-backed memecoins with skepticism due to their volatile nature.
My Instagram has been hacked and it’s following a fake coin
The official project is @YZY_MNY
DrZ26cKJDksVRWib3DWsjo9 eeXccc7hKhDJviiYEEZY
— ye (@kanyewest) August 26, 2025
Blockchain data indicated that the fake YZY token’s rise was largely driven by promotional activity on social media, including posts from influencers and the now-deleted accounts associated with the scam. Despite West’s claims, many in the community remain unconvinced, with some suggesting that the hack could have been orchestrated to create hype around the new token.
Real Kanye West YZY Token’s Struggles
Despite Kanye West efforts to clarify the situation, his official YZY token, launched on the Solana blockchain, has faced a turbulent start. The token initially spiked to a fully diluted valuation (FDV) of nearly $3 billion but quickly plummeted as the market cooled.
As of the latest data, the token’s market cap has fallen to just $73 million, an 81% drop from its all-time high. This dramatic fall reflects the challenges faced by many celebrity-endorsed tokens, which often see initial hype followed by significant price corrections.
West’s claims regarding the Instagram hack have done little to reassure investors, and many industry insiders have pointed out that celebrity-backed cryptocurrencies tend to lack the fundamental value that supports long-term growth. With the token’s value eroding rapidly, many investors are left questioning whether they were victims of another well-orchestrated scam.
Crypto Memecoins: A Growing Trend or a Scam?
The rise of celebrity-backed memecoins has become a recurring trend in the crypto space, with many tokens experiencing rapid surges in value followed by sharp crashes. These coins are often promoted through social media and endorsements from high-profile individuals like Kanye West, whose influence can drive large amounts of capital into these projects.
However, the volatility of these coins, coupled with the lack of regulation and oversight, has led many to view them as speculative investments at best and outright scams at worst.
Blockchain author David Gerard has previously stated that “all of this is like a big game of pretend with made-up financial instruments.” He argued that memecoins, in general, are essentially worthless and often serve as vehicles for insiders to profit at the expense of retail investors. Despite these concerns, the allure of quick gains continues to drive interest in these speculative assets.
